📈Potential Growth

In 2021, the real estate industry emerged as the most preferred investment option. Because of the two waves of the COVID-19 epidemic and the resulting lockdowns, the phrase "Owning a Home" became the catchphrase in every discussion – in family, social, and professional circles.

Despite being a difficult year, in which lives and livelihoods were at risk, economic growth slowed, and job losses were widespread across industries, the real estate industry saw a significant resurgence, paving the way for a positive year ahead. The sector's resiliency over the previous two waves of the pandemic gives reason to believe that it will weather the current Omicron strain threatening the world now.

The real estate industry, for its part, has adapted to the changing environment. It changed its strategy and linked its objectives and operations with changing trends and client preferences, supported by technology. The pandemic losses did not lower the sector's enthusiasm for long, and the optimistic rebound was seen in better market and consumer attitudes.

This industry is one of the main producers of economic activity in India and plays a vital part in the development of the country's infrastructure foundation. According to the CBRE–AMCHAM research, India Real Estate Market Scenario, it creates demand in more than 250 ancillary sectors and acts as a propeller for private sector engagement in the expansion of the country’s-built environment.

The key demand drivers for India's real estate market have been steady economic development, large-scale urbanization and expansion of the services industry, rising disposable income, and the sector's gaining acceptance as a traditional investment asset class. Rapid urbanization has created enormous prospects for real estate development, especially in the housing sector.

Furthermore, the IT/ITeS industry's booming expansion has been a key demand driver for the rise of commercial real estate throughout the nation. A perceived rise in family income is predicted to boost consumption and serve as a foundation for the expansion of organized retail real estate.

As the current economy improved, the real estate industry broadened its horizons beyond metropolises to explore the underlying prospects in non-metros and growing localities. Large-scale infrastructural investments, low tax rates, current trends, and government policy initiatives all contributed to the country's next wave of real estate expansion.

The pandemic-inspired trends, together with low loan rates, affordability, and other favorable considerations, fueled positive attitudes in these markets. Furthermore, state capitals and metro areas, as well as tier 2 and 3 cities, have emerged as key development drivers in the real estate market.

Tier 2 cities such as Lucknow, Amritsar, New Chandigarh, Faridabad, Indore, and Ahmedabad have seen significant interest from property purchasers and have emerged as attractive property sites. Tier 2 and 3 cities are drawing an increasing number of prospective purchasers due to infrastructural expansions, well-planned connectivity, affordability, and world-class social infrastructure.

These markets will undoubtedly continue to drive the sector's development in the next year and beyond. Homebuyers' emotional attachment to purchasing a property in their hometown also catapulted these communities to prominence. In addition, intra-city migration of families into structured group housing complexes was a significant driver of property sales in many areas. These cities' growth was characterized by larger residential areas and an abundance of open and green places.

In the top eight cities, home-buying emotions were likewise fairly strong. According to an industry survey, house sales increased by 92 percent during the July-September quarter.

According to the data, the number of new house launches increased by 21% between July and September. The higher statistics imply that consumer and investor confidence has returned, which is promising enough for the market to retain its growth pace in the next year.

The retail industry, which was harmed by the epidemic, quickly responded to the new trends as customer aspirations and preferences shifted. It saw new asset types, such as high-street and multifunctional commercial buildings, gain popularity among investors and customers.

The emphasis has shifted to high-tech, sophisticated, structured, and secure shopping experiences. The growing number of well-known brands and conscientious customers is driving up demand for upmarket retail complexes and malls, entertainment centers, and high-streets throughout the nation.

To completely capture the trends and ever-changing desires injected by the pandemic, the highways have emerged as the most significant contributor to the commercial segment's development. Developers are bolstering their portfolios as more investors and merchants engage heavily in this commercial asset class.

Today, the Indian market is one of the preferred marketplaces for many worldwide businesses. They have strong company growth goals for the Indian market. Aside from malls and shopping complexes, the primary drivers driving the development of hi-street ideas in India include shifting lifestyle, raising urbanization, and enabling 100 percent FDI in retail.

These venues have higher rental yields, and merchants are aggressively investing in them. The mixed-use development of urban India, such as contemporary multi-level vehicle parking with many advantages, is anticipated to revitalize the city's infrascapes. Another growing asset class that is poised to take center stage in the next year is the sector.

The real estate industry will emerge as a powerful pillar in the years ahead to support India's aim of becoming a $5 trillion economy, owing to its major contribution to the Indian economy. Massive infrastructure investment via Public-Private Partnership (PPP) would undoubtedly help the nation quadruple its economic potential. If favorable attitudes remain high in the next months, the industry will emerge as the next great thing in India's economic development.